Examining parental educational expectations in one of the oldest children’s savings account programs in the country: The Harold Alfond College Challenge

Abstract

This study draws data from a Children’s Savings Accounts (CSA) program and investigates the relationship between CSA enrollment policy (opt-in vs opt-out) and parental educational expectations. Opt-in programs require families to sign up to participate whereas opt-out programs automatically enroll participants. This study finds that Maine parents with a CSA, regardless of whether they opt-in or are automatically enrolled, are more likely to expect their child to attend college than parents who do not have a CSA. Further, our findings show no difference in educational expectations between parents who opt-in and those who are automatically enrolled under an opt-out policy. This study contributes to the CSA field by examining enrollment policy design on one of the oldest and most well-known CSA programs in the US.